Introduction
Welcome to the guide on Item Tax Templates in Empress, designed to help you navigate the world of item-wise taxation in a simple and user-friendly way.
In business, it’s important to have precise control over your tax strategy. With Item Tax Templates, you are able to assign different tax rates to specific items or groups, giving you that fine-tuned control you need. This feature is especially useful when creating sales orders, as it allows you to override the standard tax rate in the Taxes and Charges table for items that are subject to different tax rates.
Getting Started with Item Tax Templates
You can access Item Tax Templates by following these navigation steps: Home > Accounting > Taxes > Item Tax Template.
1. Preparing to Use Item Tax Templates
Before diving into the creation of an Item Tax Template, ensure that you have the following prepared:
- The Item or Item Group for which you’ll be creating the template.
- The ‘Automatically add Taxes and Charges from Item Tax Template’ option enabled in Account Settings. This will allow your template to be applied automatically when needed.
2. Creating Your Item Tax Template
To create a new Item Tax Template:
- Navigate to the Item Tax Template list and select ‘New’.
- Give your template a title.
- Select a tax account and set the overriding rate. You can add as many rows as needed for different rates.
- Save your changes.
Once your template is created, assign it to an item by navigating to the ‘Item Tax’ section of the Item and selecting your desired template.
Setting and Adjusting Tax Rates
Even with a template, you may have items that require different tax rates. You can adjust these rates in the Item Master by navigating to the tax table, adding a row, selecting the tax type, and adjusting the rate. For items that are tax-exempt, you can set the tax rate to 0% in the Item Master.
During sales transactions, taxes are calculated based on the Sales Taxes and Charges Template selected. However, if you have an Item Tax Template assigned to certain items, their taxes are calculated based on the rates in the template.
Assigning Templates to Individual Items and Groups
Item Tax Templates can be assigned to individual items or a whole Item Group. This allows you to apply different rates to each item in a transaction or apply a single rate to all items within a group. If you assign a template to an Item Group, it will apply to all the items in the group, unless a specific item within the group has its own template.
Validity and Important Points
You can assign a validity period to your Item Tax Templates. Additionally, it’s important to note a few key points:
- An empty Tax Category will apply the default Item Tax Template to items in transactions.
- Different templates can be applied to different Tax Categories.
- A template will only override taxes if there is a row in the Taxes and Charges table with the same tax Account Head and standard tax rate.
- To apply taxes only to items with a template, set the standard tax rate to 0.
Through the use of Item Tax Templates in Empress, you can streamline your business’s tax strategy, ensuring accuracy and efficiency. For additional help or resources, please refer to our support center.